Increased foreign condo ownership could make housing less affordable for Thais

[webfact]

 

The Thai government has proposed to increase foreign ownership of condominium projects from 49% to 75%, and extend the land leasing period from 30 years to 99 years.

 

In an interview with Thai PBS World, Praphurut Chatprapachai, a former Democrat MP candidate and legal expert, suggested that the government should develop comprehensive regulations, as he believes these latest proposed amendments could threaten housing affordability in Thailand.

 

 

Full story: Thai PBS 2024-07-02

 

Get our Daily Newsletter - Click HERE to subscribe

[DonniePeverley]

Historically Thailand has always protected it's population from outside capitalism.

 

But recent measures seem to me anyways abandoning that - first we are set on the path for extreme mass tourism, which will harm the way of life. See how locals in Japan, and many European countries are fighting back against mass tourism as their local towns are desimated. 

 

Then we have new rules outlining foreigners maybe allowed to stay longer - which as seen by the Russians will drive up prices and push locals out. 

 

Now we have the latest measures. You already know what's going to happen. 

 

It's been a disgraceful few months, and i'm quite surprised there's been no push back in the political circles. 

[ChrisY1]

When a new 2 bed condo in Bangkok starts at around 16 million, who is this twerp kidding? No expat would buy anything far from BKK center.

Xenophobia drives expats away.

[realfunster]

2 hours ago, DonniePeverley said:

Historically Thailand has always protected it's population from outside capitalism.

Yep, and hasn’t that served them well, one of the worst performing economies across South-East Asia for the last 20 years. Struggling to keep pace with more developed nations like Singapore and Malaysia and well behind the regional up-and-comers. 

 

2 hours ago, DonniePeverley said:

See how locals in Japan, and many European countries are fighting back against mass tourism as their local towns are desimated.

It’s a balanced assessment, likely being relatively comfortably off living in developed countries, they are in a financial condition to bemoan an over-supply of customers. Lucky them, nice position to be in. If they were living hand-to-mouth, I would expect a different attitude. 
 

It never ceases to amuse me that westerners coming from developed capitalist countries, with all the benefits that has brought them, bemoan Thailand trying to grow its economy and raise the standard of living for Thais. 

 

 

[Tropicalevo]

Rubbish article.

Most Thais (real ones that is) cannot afford condos - especially with the ongoing charges,

Many live in wooden shacks for goodness sake.

The headline should read 'Rich Thais want to keep prices low for their mia nois to live in'.

[Gottfrid]

To make that factor disappear, they will only need to stop with double pricing techniques.

[ChipButty]

It already has, tell him

[Celsius]

no. more foreign landlords, increased competition. Rental prices will only go down.

 

Contrary to most, I do welcome dumb Asian "investor" into Thai condo market. It has worked so well for me so far 

[Lorry]

Increased foreign condo ownership could make housing less affordable for Thais

 

Translation: "... could make condos more expensive" - that's the whole idea,  isn't it?

After all,  Srettha's background is real estate. 

[jaywalker2]

5 hours ago, realfunster said:

Yep, and hasn’t that served them well, one of the worst performing economies across South-East Asia for the last 20 years. Struggling to keep pace with more developed nations like Singapore and Malaysia and well behind the regional up-and-comers. 

 

It’s a balanced assessment, likely being relatively comfortably off living in developed countries, they are in a financial condition to bemoan an over-supply of customers. Lucky them, nice position to be in. If they were living hand-to-mouth, I would expect a different attitude. 
 

It never ceases to amuse me that westerners coming from developed capitalist countries, with all the benefits that has brought them, bemoan Thailand trying to grow its economy and raise the standard of living for Thais. 

 

 

It has absolutely nothing to do with impeding economic progress. Letting rich foreigners make rich Thais even richer will not raise the standard of living for the average Thai. Look at property markets in places like London and New York, which have become all but inaccessible to native residents due to the influx of foriegn money.

 

Bangkok was once a city where rich, poor, and middle-class mixed in the same areas. But not anymore. Just recently the vendors were banished from Lang Suan after Thaksin's daughter Paetongtarn bought a condo there. Coincidence? Look at some of the newer developments like Lang Suan Scope, where a 1 bedroom, 87 sq mtr condo sells for 47 million. The old neighborhoods off Sarasin that allowed the poor to live in the center of the city were seized  in order to build monstrosities that 99.9 percent of Thais can't afford. Now you have a city that's so sterile that the BMA has to put fancy tiles on the sidewalks in Yaowart so tourists can recognize it as Chinatown.

 

If Thailand wants to grow its economy, it should focus on creating a stable politicial situation and sustainable job creation not rank speculation so the rich can sell off the country to Chinese and Russian money launderers.

[rocksniffer]

Any time you interfere with the free market, unintended consequences can occur. Some years ago my American friend wanted to sell his condo. It was in his name. The Thai guy next door had been trying to sell his condo for B400,00. Not one inquiry in two years. My friend sold his condo for 1 million baht in 10 minutes. Please explain how limiting foreign ownership of condos is helping the Thais ? 

 

[Tom Parkinson]

10 minutes ago, rocksniffer said:

Please explain how limiting foreign ownership of condos is helping the Thais ? 

it doesn’t help the Thai guy trying to sell his condo. But it does help the Thai guys who want to buy a condo. And there are more Thai buyers than Thai sellers. 

[Aussie999]

How Many thais can afford condos, even now. Anyway, a government can always ask developers/agents, to justify pricing, they just need the balls to do so.

[Screaming]

I have never heard of a condo project, new or old reaching the magic forty nine percent mark. Condo's are a terrible investment in Thailand and most depreciate over the years and become slums.

[tomazbodner]

10 minutes ago, Aussie999 said:

How Many thais can afford condos, even now. Anyway, a government can always ask developers/agents, to justify pricing, they just need the balls to do so.

Pretty much all the Thais in my circle own condos, some houses, actually some have both or several condos that they rent out. But what is common to all (and me) is that we bought those at the times when the interest rates were fixed at 2-3% per year, while now they are considerably higher, so I don't know anyone wanting to buy a new place now, but several are trying to refinance their loans to get lower interest.

 

It is quite an arrogant statement that Thais can't afford to buy their own homes. And probably less true than me stating that most Aussies cannot afford to buy their own place in Sydney or often can't even afford to rent it.

[OneMoreFarang]

How many condominiums in Thailand have 50% foreign quota already? Many?

Some time ago I spoke with a property agent in Bangkok about that and he told me there are only few condominiums in Bangkok with that quota.

I guess in the tourist areas on the beach that might be different.

Are there many condominiums where this 75% rule would make a difference?

 

[bob smith]

9 hours ago, webfact said:

In an interview with Thai PBS World, Praphurut Chatprapachai, a former Democrat MP candidate and legal expert, suggested that the government should develop comprehensive regulations, as he believes these latest proposed amendments could threaten housing affordability in Thailand.

...more protectionist claptrap!

 

The sooner foreigners can legally own land here the better.

 

bob.

[john donson]

the lower end junk condos that 10-12 years ago when build where I live were priced 888.000 baht, now sell for 1.3 - 1.5 million...  newer condo project nearby those old, starting price 1.75 million for a shoebox... go figure...

[ChipButty]

37 minutes ago, Screaming said:

I have never heard of a condo project, new or old reaching the magic forty nine percent mark. Condo's are a terrible investment in Thailand and most depreciate over the years and become slums.

I know of one place here in Rawai that was built 7 years ago it only reached 29% foreign ownership, at the time they were 5.9 million baht they would be lucky to get their money back, there is some 2 bedroom units they have definitely lost money, 

[Guderian]

All I can say is that it's a jolly good job those evil farangs aren't allowed to own houses (wink, wink) or the rotters would obviously be pricing poor Thais out of their dream pool villas. lol

[newnative]

45 minutes ago, Screaming said:

I have never heard of a condo project, new or old reaching the magic forty nine percent mark. Condo's are a terrible investment in Thailand and most depreciate over the years and become slums.

    A number of the desirable condo projects in Pattaya have reached the 49% limit.  But, you are right, in most other areas, without high concentrations of expats, it's not a big factor with condos and the proposed increase in foregn ownership will have little or no impact on prices.

[tomazbodner]

42 minutes ago, OneMoreFarang said:

How many condominiums in Thailand have 50% foreign quota already? Many?

Some time ago I spoke with a property agent in Bangkok about that and he told me there are only few condominiums in Bangkok with that quota.

I guess in the tourist areas on the beach that might be different.

Are there many condominiums where this 75% rule would make a difference?

 

Pattaya and Phuket have lots of places with filled out foreign quotas, in Bangkok very few in Silom/Sathorn/upper Sukhumvit area, but most others are below 20%.

 

So yes, it won't make much of a difference, except for Chinese and Russians wanting to buy a condo in Phuket or Pattaya.

[newnative]

53 minutes ago, tomazbodner said:

Pretty much all the Thais in my circle own condos, some houses, actually some have both or several condos that they rent out. But what is common to all (and me) is that we bought those at the times when the interest rates were fixed at 2-3% per year, while now they are considerably higher, so I don't know anyone wanting to buy a new place now, but several are trying to refinance their loans to get lower interest.

 

It is quite an arrogant statement that Thais can't afford to buy their own homes. And probably less true than me stating that most Aussies cannot afford to buy their own place in Sydney or often can't even afford to rent it.

      I liked the first sentence of your second paragraph.  There are definitely Thais with money to buy homes.  The other day my spouse and I were on the Motorway from Bangkok back to Pattaya.  I think I counted at least 10 billboards advertising new housing estates with prices ranging from 30MB to 50MB and more.  Plus a number of other housing projects with more normal prices.  

     My Thai brother-in-law is house hunting in the BKK suburbs.  He looked at one new small 3-bedroom 2-story on a tiny land plot for about 7MB.  No air-con, no finished kitchen, no furniture, no appliances, no built-ins.  Not even shower glass in the bathrooms.   Left to think about it.  Went back a few days later. It was sold.  Most of the project is sold and the developer didn't want to reduce the price much on the few remaining homes--and, apparently doesn't need to.

[hotchilli]

11 hours ago, webfact said:

In an interview with Thai PBS World, Praphurut Chatprapachai, a former Democrat MP candidate and legal expert, suggested that the government should develop comprehensive regulations, as he believes these latest proposed amendments could threaten housing affordability in Thailand.

Only if the condo sale prices are hiked up for foreigners.

If they are sold at normal market prices then it won't matter who buys them, foreigners or locals.

[DonniePeverley]

17 hours ago, realfunster said:

Yep, and hasn’t that served them well, one of the worst performing economies across South-East Asia for the last 20 years. Struggling to keep pace with more developed nations like Singapore and Malaysia and well behind the regional up-and-comers. 

 

It’s a balanced assessment, likely being relatively comfortably off living in developed countries, they are in a financial condition to bemoan an over-supply of customers. Lucky them, nice position to be in. If they were living hand-to-mouth, I would expect a different attitude. 
 

It never ceases to amuse me that westerners coming from developed capitalist countries, with all the benefits that has brought them, bemoan Thailand trying to grow its economy and raise the standard of living for Thais. 

 

 

 

 

Utter nonsense. 

 

Singapore has a population of 6 million (compared to Thailand's 70 million), and took the British laws left in place with some strong leadership to make a success - mainly a financial centre where the local Chinese could hide their money. You simply cannot compare it to Thailand. 

 

Malaysia was in the pits like Thailand (with half the population) - however it did have established industries and a workforce that the British set up during colonialism, and then oil / Petrons has taken it to another level. 

 

 

[DonniePeverley]

12 hours ago, rocksniffer said:

Any time you interfere with the free market, unintended consequences can occur. Some years ago my American friend wanted to sell his condo. It was in his name. The Thai guy next door had been trying to sell his condo for B400,00. Not one inquiry in two years. My friend sold his condo for 1 million baht in 10 minutes. Please explain how limiting foreign ownership of condos is helping the Thais ? 

 

 

Because it sits next to a nation where the population is desperate to hide their money. 

[still kicking]

16 hours ago, Tropicalevo said:

Rubbish article.

Most Thais (real ones that is) cannot afford condos - especially with the ongoing charges,

Many live in wooden shacks for goodness sake.

The headline should read 'Rich Thais want to keep prices low for their mia nois to live in'.

Try to buy a house in OZ I feel sorry for the young Australians, Chinese buy up the whole country just a few weeks ago a young Chinese couple bought a house for over 25 million AUD 

[lapamita]

19 hours ago, rocksniffer said:

Any time you interfere with the free market, unintended consequences can occur. Some years ago my American friend wanted to sell his condo. It was in his name. The Thai guy next door had been trying to sell his condo for B400,00. Not one inquiry in two years. My friend sold his condo for 1 million baht in 10 minutes. Please explain how limiting foreign ownership of condos is helping the Thais ? 

 

nonsense and not belivable. !!!

 

not one thai quota condo is sold with 60% discount  compare to foreign unit NO !!! if its qual quality,siz,floor

the discount is maximum 25% in maximum when held in thai or thai company, most time far less

 

i would by today , if its  real 60% cheaper 555  contact me i pty or bkk.................

[Aussie999]

19 hours ago, tomazbodner said:

Pretty much all the Thais in my circle own condos, some houses, actually some have both or several condos that they rent out. But what is common to all (and me) is that we bought those at the times when the interest rates were fixed at 2-3% per year, while now they are considerably higher, so I don't know anyone wanting to buy a new place now, but several are trying to refinance their loans to get lower interest.

 

It is quite an arrogant statement that Thais can't afford to buy their own homes. And probably less true than me stating that most Aussies cannot afford to buy their own place in Sydney or often can't even afford to rent it.

SMH, There are 72 million thais, just a few more than live in your condos

[AnotherOneHere]

18 hours ago, still kicking said:

Try to buy a house in OZ I feel sorry for the young Australians, Chinese buy up the whole country just a few weeks ago a young Chinese couple bought a house for over 25 million AUD 

 

I heard about a Thai lady who managed to use a foreigner to get into Australia. Then, she left him and, through her own hard work, managed to own two houses. I also heard about Australians who lived their whole lives well over 80 and never owned a house or a condo. So, it really depends on the persons intelligence. 🧠 So, some people are just "simpler," and some are very skillful.